Success Starts With The Leadership
By Joyce Moed, Reporter

MIAMI, Fla.– One credit union that is performing well, despite a struggling economy, says the success starts with the leadership.

"Our CEO George Joseph has been very careful–conservative but not too conservative," said John Holt, executive vice president of Dade County Federal Credit Union. "We were being careful because we knew reality would someday set in. We didn’t partake in riskier things."

Dade County FCU is still writing real estate loans, "but we’re being careful," Holt stressed.
Holt said the credit union has always been very careful in its underwriting process, including always verifying applicants’ incomes.

But the strength behind the credit union earning $1.1 million in the quarter that ended June 30 may really stem from other products aside from real estate loans.

"Our strength is in auto loans," Holt said. "We’re very strong in that market."

The $430-million credit union hosts auto sales in its own parking lot each month.

"We have a very large parking lot. We can fit 200 cars," Holt said. "The dealerships all participate. We’ve done well with that. People are looking for more fuel-efficient autos."

Dade County FCU markets each sale through a direct mailing to its 83,000 members.

"We sell 70 to 90 cars in a matter of a day or two," Holt said. "Lots of dealers participate. We also have a very good rate, but it’s really something we are so good at."

The credit union also offers a service called D.A.D., or Dade Auto Desk, in which the CU finds the vehicle the member wants, including the exact color and style.

Another way the credit union is staying successful is thanks to its payment protection product.
"We sell insurance on all our loans," he said. "We are so strong in that. We earn a lot of non-interest income and that has really helped us as well."

As advice to other credit unions looking for ways to stay afloat during tough economic times, Holt said, "I think you have to find something you’re really good at, and then when you do, carefully market it. You also need to find another source of income for the credit union, such as fee income or insurance," he said.

"And you have to be careful of cost," Holt stressed. "Credit unions are there to help people but you also have to make money."

This is why Dade County Federal Credit Union is always looking for ways to keep costs at a minimum without sacrificing quality, Hold said.

And perhaps most important, Holt advised, "don’t back off on marketing."

"I think in any financial institution you always need to think ahead of the next downturn," he added. "You always have to think of an economy that can downturn in the future."